Yes agreed, there are a few. Not many though. The trouble is transparency of cost price they paid and rehab actual costs. 
How can you really assess both these.

even price records on zillow are wrong or slow to update.
so how can people really know cost base. 

If it is over valued then lending becomes impossible from us banks

I have to laugh really as US Invest pass themselves off as selling at market property. I now work with two ex-employees  of US invest and they left as the property they were selling are 2nd or even third hand bought. In other words US Invest buy from other firms that buy at auction or as your should direct from sellers either private or…[Read more]

i did a duplex in Townsville $660K cost to buy new build
$12,000 strata title cost
revalued at $360K each

Worth it

Guys,
Buying within a SMSF is ok, although you cannot borrow for the property. This violates the in-house asset rule. You can hold it in an LLC (C-corp is not relevant except for tax election with the IRS) which technically is an in-house asset but the ATO allows exceptions to this rule PROVIDED THE COMPANY HOLDING THE ASSET (LLC) IS UN-GEARED. ie…[Read more]

Loan Terms:

These are important as the repayments will be higher and tax deductibility lower for the shorter terms upto 15 years. We recommend that anyone looking to maximise cash flow and after tax returns go with the standard 30 yr term.

Rates are available for 4% – 7% on these 30 yr terms and 30% deposit in most states. shorter terms equate…[Read more]

Gnibbler,

Never heard of the banks requiring 2 years rental income certainly not the bigger ones. They are more looking liquidity from all sources. what they want to see in tax returns, income and wages and cash at bank. Also important is property equity be it in Australia or USA. The banks we are using will allow 70% of any rented property as…[Read more]

Hi Sonic 81,

Citibank USA will provide any foreign national including Australians with a one-off US property loan.
Its a 4% interest with a 30 year term home mortgage and you need 30% deposit which you can have as cash or borrow in Australia from your property as a line of credit.

We have two clients doing these one in Australia and one in…[Read more]

Talk to a surveyor first to ensure you can subdivide, that would be my first step.

Step 1:
Dont buy off anyone who buys the property rehabs then onsells to you….your paying above true value.
Step 2:
Buy through someone that can get you US bank finance which means they are a US based operation as well as Australian, critical.
Step3:
Dont buy cheap rubbish stay in the $70K + zone. You can still get a gross rental return of 20%…[Read more]

The best way is to use whats called a Master LLC setup by an attorney. Which then has an operating agreement with all properties through a management LLC. This means each asset is protected but you dont have to set up anew LLC for each home. Cost is about $2500 so its worth it if your going to buy more than say 3 homes. <moderator: delete…[Read more]

Ivanc,

It can be best sometimes to use a family trust as the member of yourt LLC to own US property. That way you can split income and take advantage of the new $18,200 tax free threshold for any beneficiaries. Only adult children can use this though, minors are taxed heavily. As for the US tax i can recommend my accountant or several others in…[Read more]

Would tend to agree here from an asset protection point of view.

SMSF & LLC
Needs to be set up with the SMSF as the member of the LLC as follows:
ABC LLC
ABC pty ltd ATF the ABC super fund

borrowing:
this is tricky due to the above setup. One could assume that the SMSF is purchasing shares in the LLC which then means it is an 'in-house' asset…[Read more]

Why open a US bank account if you don't need one ?

If you have a Us agent buying property for you just do what we do for our clients. Rent from US tenants comes into our escrow account and is then wire transferred to their Australian and other non-Us bank accounts at no charge every month….easy.

I dont know why everyone recommends opening a US…[Read more]

First disclosure: my company is a US property facilitator.

I have been am still currently a US Invest member. Very slick operation but you have to wonder how do all the staff get paid ?
I looked at many properties they offer and still do. I have never bought because i cannot see the upside in purchasing what looks to be property bought, rehabed…[Read more]